The top 5 LatAm nations in Doing Business 2018

Countries in Latin America are gradually making it easier for key growth drivers SMEs to do business, the World Bank said.

The multilateral, in a statement accompanying its annual Doing Business report, said half of the region's 32 economies implemented reforms over the past year. This brings the overall 15-year tally to 398.

Latin American economies perform best in the areas of "getting electricity" and "getting credit," the statement said.

"Reforms implemented by economies in Latin America and the Caribbean continue to improve the business environment for entrepreneurs," said Santiago Croci Downes, program manager of the World Bank's Doing Business unit. "As the impact of these reforms spreads, we are likely to see a more dynamic private sector which will boost economic growth in the region."

The World Bank awarded a gold star to El Salvador, one of this year's global top improvers. The country, which implemented four reforms, has strengthened electricity supply and made it easier for companies to file tax returns and make associated payments.

Jamaica and the Dominican Republic were also singled out for praise. Each reduced the time it takes to start a business and strengthened electricity supply.

In the region, Colombia, Mexico and Jamaica have implemented the most reforms over the past 15 years to make it easier for small businesses to set up shop and operate.

The biggest challenge facing the region is the time it takes to pay taxes, the bank said, adding that it takes, on average, 332 hours a year in Latin America compared with an average of 161 hours in the OECD high-income economies. Countries must also continue to reduce the time it takes to start a business, which takes an average of 38 days in the region compared with 78 days 15 years ago. The global average is 20 days.

The Doing Business authors measure 11 aspects of business regulation relating to entrepreneurship. Now in its 15th year, the report ranks 190 economies.

THE REGIONAL TOP 5

MEXICO

DTF score (distance to frontier, which "represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005"): 72.27, up 0.18 from last year's report.

At 49, the top ranked country in the region is Mexico, which was praised for its work in bolstering power supply by installing smart meters, expanding the medium-voltage network and installing a new supply monitoring system. The World Bank, however, said a hike in construction permit and property registration fees is a negative development.

Mexico also scored highest in the areas of getting credit and resolving insolvency.

CHILE

DTF score: 71.22, up 0.37 from last year's report.

Ranked 55, Chile performed best in the areas of dealing with construction permits, resolving insolvency and getting electricity. It performed worst in the areas of getting credit, paying taxes and trading across borders.

PERU

DTF score: 69.45, up 0.01 from last year's report.

Ranked 58, Peru performed best in the areas of getting credit, registering property and dealing with construction permits. It performed worst in the areas of paying taxes, starting a business and trading across borders

COLOMBIA

DTF score: 69.41, down 0.11 from last year's report

Hot on the heels of Peru, Colombia, at 59, performed best in the areas of getting credit (ranked 2), protecting minority investors and resolving insolvency. It performed worst in the areas of trading across borders, starting a business and dealing with construction permits.

COSTA RICA

DTF score: 69.13, up 1.23 from last year's report

Ranked 61, Costa Rica was ranked best for getting credit, getting electricity and registering property. It was ranked worst for resolving insolvency, enforcing contracts and protecting minority investors.

WHAT ABOUT BRAZIL AND ARGENTINA?

The region's No. 1 and No. 3 economies were ranked 125 and 117, respectively.

THE BEST - AND THE WORST

New Zealand held the No. 1 spot while Somalia was the worst ranked, with Venezuela just a few places behind.